Property investment activity in Ireland was subdued during the first half of 2017, according to new research, but is expected to pick up over the coming months.
The Ireland Investment Market H1 Bulletin published by Lambert Smith Hampton shows that investment transactions were down year-to-date to €782.8m (£716m) for the six months to June 2017, standing 56 per cent below the half-year average.
A shortage of supply of sizeable assets being brought to the market meant that activity was driven by smaller transactions.
The office sector accounted for a third of total volume at €259.6m (£237m), the majority of which took place in Dublin. However, other notable deals include the acquisitions of the €20m (£18.3m) Ericsson Facility in Athlone and the €11m (£10.1m) Block B building at Bray Civic Centre.
Dalata's €62.5m (£57.3m) acquisition of The Clayton Hotel in Dublin and Clarion Hotel in the Liffey Valley also provided a significant boost to the leisure and alternatives sector.
Looking ahead, the report suggested that activity is expected to increase in the second half of 2017.
Paddy Brennan, head of capital markets in Lambert Smith Hampton, said the trend of a lack of quality assets being made available "is changing" and there is "now a list of great properties for investors to choose from".
"Investors' appetite remains robust and we anticipate a positive outlook for the remainder of the year and into 2018 for the commercial property market. The Irish economy is continuing to strengthen and the number of cranes on the Dublin skyline has doubled in the past year, a sure sign of investor confidence.
"For the fourth year running, Ireland is the fastest growing economy in Europe. Foreign investment is flowing and consumer confidence is continuing to improve.
"Britain's exit from the EU presents a unique opportunity for Ireland and we believe that property investment will receive a boost in the coming months."
